A smart contract is a computer program which controls the transfer of cryptocurrencies between different people after specific conditions have been met. Smart contracts are run and executed by blockchain technology. In addition, the contracts are also stored in the Blockchain technology which can be described as a decentralized ledger which also runs cryptocurrencies such as Bitcoin. The beauty of smart contracts is that they work on their own. They are designed in a way that they depend on one another meaning that when one smart contract is completed it triggers the start of another.

Smart contracts offer more than just the transfer of digital currencies. Through Blockchain technology, these contracts can be used in different areas such as supply chain departments in companies, controlling online games, running a voting system among others. The beauty is that they cannot be interfered with because changing one contract would need you to change the entire coding which is practically impossible.

Benefits of smart contracts

Security – smart contracts work through Blockchain technology which is decentralized which makes them very secure and impossible to hack.

Speed – Through smart contracts transaction time is reduced and your transaction can be approved within seconds.

Cost-efficient – Smart contracts have eliminated costs of hiring staff to monitor the progress of a transaction.

Paperblockchain.com is your premier source for everything Bitcoin related. We however are not the Bitcoin network itself, and cannot assist with questions unrelated to the paperblockchain.com suite of tools and services. If you need help with general Bitcoin network questions and issues, please visit our Education page and ask questions there for a free and open discussion about Bitcoin with others in the Bitcoin community.